Australian stocks are rallying

Photo by Scott Barbour/Getty Images

Australian stocks have begun the new trading week modestly higher, rebounding after a small loss on Friday.

First, the scoreboard as at 10.20am AEDT:

  • ASX 200 5558.50 , 25.57 , 0.46%
  • All Ords 5613.10 , 23.42 , 0.42%
  • AUD/USD 0.7287 , -0.0017 , -0.23%

And here’s how individual sectors are performing:

  • A-REITS 1.42%
  • Consumer Discretionary 0.43%
  • Consumer Staples 0.39%
  • Energy 0.42%
  • Financials 0.22%
  • Healthcare 0.77%
  • Industrials 0.95%
  • Information Technology 0.54%
  • Materials 0.29%
  • Telecommunications 0.65%
  • Utilities 0.95%
  • All Ords Gold Index 1.10%

As the scoreboard shows, all sectors are trading higher. It’s on the back of lower-than-normal trading volumes.

This is not unusual at this time of the year, with stocks now well and truly in the period known as the “Santa Claus” rally.

Whether that form continues today will likely be determined by the release of Australia’s mid-year economic and fiscal outlook, or MYEFO, that will be released at Midday in Canberra.

It will perhaps not be the updated government fiscal position that will be of most interest to financial markets, but whether the budget snapshot will be enough to see Australia’s AAA rating maintained by ratings agency Standard and Poor’s.

For months the ratings agency has warned that the AAA rating was under threat of being downgraded, slapping a negative watch on Australia’s sovereign rating back in early July.

ASX 200 5-Minute Chart. Source:

NOW READ: Here’s what to watch in today’s critical federal budget update from Scott Morrison

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